Is Microsoft already manufacturing the next Xbox?

We have had rumors of the next Xbox since the last one came out. We had heard that it was called the Xbox 720, with a codename of “Durango”. So many rumors, so little fact. Well, the latest rumor is that Microsoft is already manufacturing the consoles.
According to one of IGN’s sources, assembly of the nex-gen console has already begun at the Austin, Texas branch of Flextronics. Apparently, prior to the manufacturing process, the company had put together a testing group that was separate from the company and was tasked to come up with comprehensive marketing, and perform hardware and software tests of the next-gen Xbox.

The consoles being manufactured could just be development kits designed for developers so that they know what sort of hardware and software they would be working with. If we hear more, we will let you know.